The yield on the most traded 6.07%, 2014 bond ended at 6.53%, one basis point below Wednesday's close. It had risen to 6.59% after inflation data showed while prices fell in annual terms, they were rising on a weekly basis. The yield on the 10-year benchmark bond which registered only 35 deals was at 7%, one basis point above its previous close.
Buying is now mainly on account of ample liquidity, but overall the sentiment will remain cautious ahead of the budget, said a senior trader at a state-run bank.
Rupee ended five paise lower at 48.60/61 against the dollar, on emergence of month-end dollar demand and stronger dollar overseas amid bearish local stocks. The domestic currency resumed steady at 48.55/57 a dollar from its last close of 48.55/56 and hovered in a range of 48.73 and 48.49 during the day.